Options Movement At Science Applications Intl: DONNA MOREA Exercises Worth $157K

DONNA MOREA, Board Member at Science Applications Intl SAIC, reported a large exercise of company stock options on January 8, according to a new SEC filing.

What Happened: The latest Form 4 filing on Monday with the U.S. Securities and Exchange Commission uncovered MOREA, Board Member at Science Applications Intl, exercising stock options for 3,177 shares of SAIC. The total transaction was valued at $157,658.

The Tuesday morning market activity shows Science Applications Intl shares down by 0.56%, trading at $125.97. This implies a total value of $157,658 for MOREA's 3,177 shares.

Get to Know Science Applications Intl Better

Science Applications International Corp provides technical, engineering and enterprise IT services primarily to the U.S. government. Specifically, the company offers engineering, systems integration and information technology for large government projects and a broad range of services with an emphasis on higher-end technology services. The company's end-to-end enterprise IT offerings span the entire spectrum of customers' IT infrastructure.

Key Indicators: Science Applications Intl's Financial Health

Revenue Growth: Science Applications Intl's revenue growth over a period of 3 months has faced challenges. As of 31 October, 2023, the company experienced a revenue decline of approximately -0.73%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Navigating Financial Profits:

• Gross Margin: The company shows a low gross margin of 12.08%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Science Applications Intl's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.79.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.31, caution is advised due to increased financial risk.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 13.41, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.9 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 9.31, Science Applications Intl presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Understanding the Significance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Unlocking the Meaning of Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Science Applications Intl's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.